Gold Price Futures (GC) Technical Analysis – May 21, 2018 Forecast

An easing of geopolitical tensions over a potential trade war between the United States and China is pressuring June Comex Gold on Monday. Firmer U.S. Treasury yields and a stronger U.S. Dollar are also behind the move. Traders should pay attention to the Euro. If the EUR/USD turns positive, we could see a short-covering rally in gold.

Daily June Comex Gold

Daily Swing Chart Technical Analysis

The main trend is down according to the daily swing chart. Due to the prolonged move down in terms of price and time, today’s session begins with the market in a position to post a closing price reversal bottom.

The major range is $1375.50 to $1247.20. Its retracement zone at $1296.20 to $1311.40 is resistance.

Daily Swing Chart Technical Forecast

The trend is down and momentum is down. If this continues over the near-term then we could see an eventual break into the December 12 bottom at $1247.20.

Recovering Friday’s close at $1291.30 will be the first sign of strength. This will put gold in a position to form a potentially bullish closing price reversal bottom.

Closing over $1291.30 will shift momentum to the upside. This could trigger a move into the major Fib level at $1296.20. Overcoming this level will mean the buying is getting stronger.